Article reprinted from: Yue Xiaoyu
ETH's long-term stagnation still requires some psychological reassurance for everyone.
One viewpoint on the long-term stagnation of ETH is that it is currently in a stage of changing hands, with major Wall Street financial institutions becoming the new players, gradually taking over the chips from the previous wild players.
We can also verify from the data: over the past year, the market share of the top 100 holding addresses has shown an upward trend, currently reaching 66%, especially after the approval of the ETH ETF.
This indicates that the concentration of ETH is actually increasing. Top addresses have been buying, but the price of ETH has not risen—what does this indicate?
On one hand, it indicates that the players have been consistently present and are continuously accumulating; on the other hand, it shows that there is a large amount of turnover in the market, where not only retail investors are discarding their chips, but also these top addresses are internally swapping, which is to say, changing players.
It should be noted that ETH and BTC are the only two tokens with ETFs, and ETH has a significant advantage over BTC: staking rewards.
Once the ETF opens for staking rewards or even further staking, a no-risk return of at least 3% per year in terms of coins is actually very attractive, especially compared to traditional financial products.
This is the untapped potential of ETH, and also its potential greatest benefit.
Naturally, traditional financial institutions will not miss this cake and have a strong willingness and motivation to become the new players of ETH.
However, ETH has already been the main narrative in two rounds of bull and bear markets, so there are naturally more long-term holders, and the chips are more dispersed. Therefore, the turnover time for these chips needs to be relatively long, requiring a full washout.
Therefore, it is necessary to long-term suppress the price of ETH, making previous long-term holders discard their chips, such as switching to popular SOL, in order to concentrate the chips in the hands of the new players.
Only after enough accumulation in Xinzhuang will there be the motivation to raise the price of ETH.
This is a deliberate scheme.
Therefore, do not discard the truly valuable chips in your hands, namely BTC and ETH. Only by enduring this long and painful washout can one achieve the desired long-term gains.
